Replies to post #411985 on Mr Cooper Group Inc (COOP)

[JusticeWillWin]

Hmm, the facts are:

1) On Monday, CDEL showed up with 1987K shares @2.20 at the Ask
2) Monday and Tuesday we had a high Short Volume Ratio of more than 70% (http://shortvolume.com/ enter WMIH and set time period to 5 days)
3) Wednesday and Thursday the PPS stayed BELOW the 2.20, and the Short Volume Ratio was only 5% (Wednesday) and 40% on Tuesday which means no shares from CDELs 1987K order @2.20
4) On Friday the PPS reached the 2.20 again, and CDEL could continue its sale from the Ask at 2.20, and the Short Volume Ratio increased to 81%, its highes value since early 2013!

Seems very strange to me. But if you assume the short volume date is accurate, then the conclusion must be that CDEL is shorting WMIH

These are the facts, but one can only speculate about their reasons...

[JusticeWillWin]

IMO it is all about the conversion of the B preferreds

The higher the PPS, the less common shares for the B preferreds

Let's say the Ask looks like this:

2.89 <----- 1000 shares
2.25 <----- 3000 shares
2.20 <----- 1.9 million(!)
2.19 <----- 3000 shares

If someone wants to buy 3000 shares and sets a limited order to 2.19, he would get his 3000 shares for 2.19

Now the 2.19 is gone and the Ask looks like this:

2.89 <----- 1000 shares
2.25 <----- 3000 shares
2.20 <----- 1.9 million(!)

If someone wants to buy 50.000 shares and sets a 2.25 limit, the order should be executed at 2.20, because someone wants to sell 1.9 million shares at 2.20

The new Ask is

2.89 <----- 1000 shares
2.25 <----- 3000 shares
2.20 <----- 1.85 million(!)

As long as someone puts enough shares at the 2.20, he can create a "fake wall" there and prevent the PPS from rising.